Passing of Accounts

Kingston and Eastern Ontario Passing of Accounts Lawyer

“Passing of Accounts” refers to the presentation of formal accounts to the beneficiaries of a will and to the Court, which are examined by the Court and either approved, that is, “passed” in the form presented; amended by court order; or not passed because the Court is not satisfied with the accounting or some aspect of the administration of the estate reflected in the accounts.

Estate Trustees, trustees, attorneys for property and guardians of property of mentally incapable individuals are all required to maintain records of their dealings with the property under their administration and care. These persons must by law maintain estate accounts but are not required to pass them. However, an estate trustee may voluntarily decide to have the accounts audited by the Court or, alternatively, may be compelled to audit them.

An estate trustee may have his or her actions approved in only one of two methods. The accounts may be presented to the beneficiaries who may then approve the accounting and discharge the estate trustee. However, if any interested beneficiaries suffer some form of legal incapacity, such as being a minor or mentally incapable person, then the approval cannot be obtained from all of the beneficiaries. In such cases, or where one or more of the beneficiaries objects to the accounts, then the estate trustee’s only recourse is to present the accounts to the Court for approval.

The accounts are presented in a manner prescribed by the rules of the court. Any person who is unsatisfied with the accounts or the claim for compensation by the trustee may file a Notice of Objection in the court.

Objections to accounts arise when accounts are not properly prepared in accordance with the Rules of Court so that it is difficult to understand the various transactions. Objections can also arise when beneficiaries object to a particular disbursement made by the personal representative, trustee, guardian or attorney from the estate or the amount of the disbursement. A person having a financial interest could have an objection relating to the choice of investments or rates of return on funds invested in the estate or trust. Finally, the amount of compensation claimed by the personal representative, the allowance of which is in the discretion of the court, is often the basis for disagreement between beneficiaries and trustees.

Fleming Estate Law represents personal representatives, trustees, attorneys and guardians of property in preparing accounts in court form, commencing applications to pass accounts, applying over the counter to pass accounts where there are no objections to accounts or where objections are withdrawn before the scheduled hearing, at mediation involving disputes over accounts and, upon the hearing of the application or trial of any issues arising in the application which cannot be resolved upon application.

We also represent persons having a financial interest in an estate who wish to compel a personal representative, trustee, attorney for property, or guardian of property, to pass his or her accounts; in reviewing accounts and preparing notices of objection to accounts; and representing the person having a financial interest in the court hearing or trial.

To get the professional help you need related to the passing of accounts and estate law in Kingston, Eastern Ontario, and the surrounding areas,contact Fleming Estate Law today.